APU Careers & Learning Online Learning Tuition Assistance

Do You Know Your Different Direct Loan Types?

The world of loans has its tendency to be a confusing and intimidating place. If you’re not well versed in the many different types of loans that are available to you, this post help clears up some of your questions. Here are three direct loans that you can choose from with helpful points about each to help you on your way!

Direct Subsidized Loans:

  • For students enrolled at least half-time with financial need.
  • No interest is charged while you are in school at least halftime, during your grace period, and during deferment periods.
  • You do not have to make payments while you are attending school at least half-time and during your grace period.
  • You will receive a six-month grace period after you drop below half-time.

Direct Unsubsidized Loans:

  • For students enroll at least half-time and not based on financial need.
  • Interest is charged during all periods.
  • You do not have to make payments while you are attending school at least half-time and during your grace period, but interest will continue to be charged.
  • You will receive a six month grace period after you drop below half-time.

Direct PLUS Loans:

  • For parents of dependent undergraduate students who are enrolled at least half-time.
  • You can borrow up to the school’s cost of attendance, less all other financial assistance you receive.
  • Interest is charged during all periods.
  • Direct PLUS Loans do not have a grace period. The repayment begins as soon as the loan is fully disbursed.
  • To qualify for a Direct PLUS Loan, you must not have an adverse credit history. A credit check will be required.

If you’re looking for more information on financial aid contact your financial aid team at your university. For students of American Public University, our Financial Aid Team can also help answer any questions you may have! Email them at finaid@apus.edu.

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By Alisa Berry
Online Learning Tips Staff

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